Mytrah Energy adds wind capacity, on track to producing 1 GW

According to reports, wind power has to be mainstreamed as it is the cheapest source of energy. Governments need to support wind power producers. The latest tariff of Rs 4.7 per unit from Andhra Pradesh Electricity Regulatory Commission for wind is encouraging, but it could have been Rs 5 per unit.

Renewable energy company Mytrah Energy Limited is busy adding fresh capacity to its wind power generation portfolio across several States including Andhra Pradesh, Tamil Nadu, Karnataka and Maharashtra. Listed on the Alternate Investment Market of London Stock Exchange, Mytrah currently holds a wind power generation asset portfolio of 310 MW and is on course to installing a 1 Gigawatt (1,000 MW) capacity. In a recent interaction with Business Line, Vikram Kailas, Managing Director of Mytrah Energy, said: “We prefer to set up our own plants rather than make acquisitions. This helps us have better control of the business. Wind power generation tariffs are getting better and anything around Rs 5 a unit suits the sector.” “The Government should encourage generation based incentive (GBI) for projects commissioned after March 2012.”

Excerpts from the interview:

What is the current installed capacity and what are your plans for 2013?

Mytrah now has 310 MW of operating capacity and is set to close the year with 340 MW. It expects to add another 500 MW in financial year 2014. In Andhra Pradesh, we have installed capacity of 63 MW and intend to add about 140 MW by March 2014, taking it up to over 200 MW.

How will you meet the funding requirement and what is the capex?

The capital cost of assets is the lowest in the industry. We have a capex plan of Rs 3,300 crore for FY 2014. Of this, 30 per cent will be in Andhra Pradesh. We will continue to use innovative funding options to meet our requirements through good relationships with a clutch of 18 banks. Despite gloom in the finance world, where banks are being conservative, we have been offered conservative interest rates.

Any plans for private equity investments? How much have you raised thus far?

We have not raised funds through private equity. We will evaluate that requirement as it arises. We have raised Rs 1,100 crore of equity and Rs 1,800 crore of debt and are finalising debt of Rs 1,200 crore. As more projects get set up, we will have cash-flows that will add to our funding.

The Central and State Governments are focussing attention on wind and solar power generation. Yet there seem to be problems…

Wind power has to be mainstreamed as it is the cheapest source of energy. Recent bids for thermal coal plants in Uttar Pradesh support this argument. Governments, therefore, need to support wind power producers. The latest tariff of Rs 4.7 per unit from Andhra Pradesh Electricity Regulatory Commission for wind is encouraging, but it could have been Rs 5 per unit.

By the next wind season, how much capacity will you add?

By September next, we will add 240 MW, taking the capacity to 600 MW. This includes 100 MW in Karnataka, 38 MW in Andhra Pradesh, 31 MW in Maharashtra and 100 MW in Tamil Nadu.